Cathie Wood Doubles Down on Tesla (TSLA) as Musk Pivots to xAI and Robotaxis—Is This the Next Big Bet?

Elon Musk's Tesla juggles two moonshots—and Wall Street can't look away. ARK Invest's Cathie Wood just loaded up on TSLA shares as the CEO diverts attention (and capital?) between bleeding-edge AI and driverless taxis. Again.

### The xAI Gambit: More Than Just ChatGPT Rivalry?

Musk's shadow AI startup reportedly courting fresh funding—while Tesla's own Dojo supercomputer chews through data. Coincidence? Or another 'synergistic' cash burn?

### Robotaxis 2.0: Full Self-Driving or Full Self-Delusion?

Remember '1 million robotaxis by 2020'? The rebooted vision now promises... something. Meanwhile, regulators still can't decide if FSD belongs on roads or in courtrooms.

### Wood's Wager: Conviction or Desperation?

ARK's flagship ETF bought the TSLA dip—because nothing says 'long-term thesis' like averaging down after a 40% haircut. But hey, at least it's not another crypto pivot.

TLDR

• Tesla stock forms new base at $315.54 with a buy point at $367.71 after Cathie Wood’s Ark Invest purchased nearly 60,000 shares

• Elon Musk proposes Tesla shareholder vote on investing in xAI, but rules out a merger between the two companies

• SpaceX has committed $2 billion in funding to xAI as it launches Grok 4, its upgraded AI chatbot

• Tesla is expanding its Model Y robotaxi geofence in Austin and targeting a Bay Area rollout pending regulatory approval

• Q2 earnings are due July 23, with speculation rising over new product reveals such as the Roadster or Optimus

Tesla Inc. (NASDAQ: TSLA) is trading at at $315.54, up 0.65%, as CEO Elon Musk juggles corporate crossovers, AI ambitions, and a strengthening stock base.

Tesla, Inc. (TSLA)

Investor Cathie Wood’s Ark Invest purchased nearly 60,000 shares on Friday, signaling renewed confidence in Tesla stock, which is now forming a new technical base with a traditional buy point at $367.71.

Musk Rules Out Merger, Backs xAI Investment Vote

Amid swirling speculation, Musk confirmed this week that Tesla will not merge with his AI startup xAI. However, he proposed a shareholder vote on whether Tesla should invest in xAI, potentially allocating significant capital to the project. A prior social media poll from 2024 showed majority support for a $5 billion investment.

🚨 Musk suggests Tesla investor vote on xAI investment, rules out merger

Responding to a user post on X asking Tesla investors if they supported a merger between the two companies, Musk on Monday replied "No." He had said on Sunday he WOULD ask Tesla shareholders to vote on… pic.twitter.com/Ig5SYMNykl

— Herbert Ong (@herbertong) July 14, 2025

This follows news that Musk’s rocket company SpaceX agreed to invest $2 billion in xAI, as part of a $10 billion fundraising round. Musk earlier merged xAI with X, the social platform formerly known as Twitter, valuing the AI company at $113 billion. Musk aims to unify his companies around AI infrastructure and Grok, the xAI chatbot already integrated into Tesla vehicles delivered after July 12.

Robotaxi Service Expands Amid Ongoing AI Push

Tesla also expanded its geofenced Model Y robotaxi ride-hailing service in Austin, Texas. According to Musk, the company is awaiting regulatory approval to launch a similar service in California’s Bay Area within months. Wedbush analyst Dan Ives called the robotaxi progress “positive,” highlighting its centrality to Tesla’s long-term bullish narrative.

A recent post by Musk teased a “most epic demo ever” to arrive before year-end, sparking speculation about long-awaited reveals such as the Tesla Roadster or the humanoid robot, Optimus.

Stock Performance and Technicals

Tesla stock has rallied 32% since its April 22 Q1 earnings call, buoyed by robotaxi excitement and Musk’s temporary retreat from political drama. However, TSLA is still down about 22% year-to-date and 36% below its all-time high of $488.54. The stock has experienced volatility tied to Musk’s public spats, including a feud with President TRUMP and the fallout from Grok’s controversial behavior.

Tesla now trades with a 21-day average true range (ATR) of 4.53%, indicating ongoing price swings. The recent base formation on the weekly chart offers technical traders a new setup, though current levels remain about 14% below the $367.71 buy point.